The company aims to raise NIS 50 million at a value of NIS 250 million.
Epsilon Investment House Ltd. is likely to file a draft prospectus for its IPO next week, with the offering due to be held in the coming months. The company aims to raise NIS 50 million at a value of NIS 250 million before money. Epsilon, which is jointly owned by IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Koor Industries (NYSE: KOR; TASE: KOR) and founders Shmuel Frankel and Ron Levkovich, will not make an offer for sale in the IPO, but instead, a full dilution of the stakes of existing shareholders.
It is believed that Epsilon will use the proceeds to expand its activity, primarily in provident fund investments. These are considered by investment houses to be a pillar of stability, providing a steady income regardless of market conditions, as opposed to other fields of activity which are dependent on the state of the market. Epsilon recently expressed an interest in purchasing the Gadish provident fund from Bank Hapoalim (LSE: BKHD; TASE: POLI).
Frenkel and Levkovich founded Epsilon 19 years ago. It currently manages NIS 5 billion in assets in investment portfolios, mutual funds and hedge funds. Recently, it expanded into underwriting and its specialist arm, Epsilon Underwriting and Issuing Ltd. will probably lead the IPO for its parent.
Published by Globes [online], Israel business news - www.globes.co.il - on January 2, 2007
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